New Stock Outlook | WeiYi Intelligent Manufacturing: EIIR Track Market Share exceeds 46%, Profitable Turning Point from Project-based to Standard Products has emerged

On September 29, Changzhou WeiYi Intelligent Manufacturing Technology Co., Ltd. (referred to as "WeiYi Intelligent Manufacturing") formally submitted its listing application to the Hong Kong Stock Exchange Main Board, with Orient (International) serving as the sole sponsor. WeiYi Intelligent Manufacturing has joined the ranks of companies aiming to become the first stock of industrial intelligent Siasun Robot & Automation on the Hong Kong stock market. Other companies in the same race include Standex Siasun Robot & Automation, Yifei Technology, and Estun Automation, which is sprinting for a secondary listing. Path validation from "technology investment period" to "scale-profit inflection point" WeiYi Intelligent Manufacturing provides global customers with ready-to-use, highly flexible, and highly intelligent industrial intelligent Siasun Robot & Automation (EIIR) products and solutions. By revenue in 2024, the company is the largest EIIR supplier in China. The company is one of the first globally to achieve large-scale commercialization of intelligent entities in multiple complex industrial scenarios. Financial reports show a significant revenue growth trajectory for WeiYi Intelligent Manufacturing. From 2.21 billion yuan in 2022 to 600 million yuan in 2024, with a compound annual growth rate of 64.8%. In the first half of 2025, revenue reached 412 million yuan, a 187.3% increase from the same period in 2024, showing an accelerating trend. In terms of profitability, the company has experienced a clear profit inflection point: cumulative operating losses of approximately 1.86 billion yuan from 2022 to 2023, achieving an operating surplus of 56.39 million yuan in 2024, and maintaining an operating surplus of 43.40 million yuan in the first half of 2025. On the net profit side, the company made 15.74 million yuan in profit in 2024 and 6.68 million yuan in the first half of 2025, indicating that the company has crossed the breakeven point. Although the company has achieved profitability, the net profit margin is relatively low (2.6% in 2024, 1.6% in the first half of 2025), indicating that the company is still in a "microprofit" state, and its profit-generating ability needs further enhancement. Furthermore, the company maintains a high level of research and development investment. Research and development spending from 2022 to 2024 was 76 million, 178 million, and 165 million yuan respectively, reaching 115 million yuan in the first half of 2025. The research and development expenditure ratio decreased from 34.2% in 2022 to 27.9% in the first half of 2025. The proportion of general and administrative expenses decreased significantly from 33.4% in 2022 to 8.2% in the first half of 2025, indicating improved management efficiency as revenue scales up. Sales expenses peaked in 2023 and then declined, possibly reflecting optimized customer acquisition costs after an increase in market acceptance. As revenue scales up, various expense ratios show a downward trend, indicating the emergence of economies of scale. This provides a possibility for further enhancing the company's future profit-generating ability. In terms of revenue structure, the company's business structure has undergone a fundamental transformation. The revenue contribution of the previously dominant "AI-enabled intelligent products" decreased from 42.5% in 2022 to 26.7% in the first half of 2025. The revenue contribution of the EIIR product line increased from 15.3% in 2022 to 53.6% in the first half of 2025, transitioning from being just a "component" of the business to becoming the "absolute main force" within two and a half years, confirming its position as a growth core engine. Its flagship EIIR product line's contribution to total revenue increased from 15.3% in 2022 to 53.6% in the first half of 2025, becoming the absolute revenue pillar. These data clearly outline WeiYi Intelligent Manufacturing's growth path: from being based on AI-enabled customized equipment and modules to successfully incubating and scaling up the more disruptive EIIR standard products, it has achieved the transformation and upgrade from project-based services to a platform-oriented, standardized product company. EIIR's dominance in the race track is stable, but customer concentration risk needs to be monitored In terms of industry development, China is the world's largest manufacturing country, with industrial intelligence accelerating, and the market size of Chinese industrial AI-enabled intelligent bodies (including AI-enabled industrial Siasun Robot & Automation, intelligent production equipment, etc.) will continue to increase. According to Zhaoshixun Consulting data, calculated by revenue, the market size of Chinese industrial AI-enabled intelligent bodies increased from 39.1 billion yuan in 2020 to 141.9 billion yuan in 2024, with a compound annual growth rate of 38.0%, and is expected to increase to 632.9 billion yuan in 2030 at a rate of 28.3%. According to industry data cited in the prospectus, based on 2024 revenue, WeiYi Intelligent Manufacturing is the largest EIIR supplier in China. Specifically, in 2024, the market size of Chinese industrial intelligent Siasun Robot & Automation was approximately 587 million yuan, with WeiYi Intelligent Manufacturing ranking first in the industry with revenue of 271.8 million yuan, accounting for over 46% market share. This data highlights the company's leadership position in the sector: the company's revenue scale is significantly higher than the second-ranked company A (about 190 million yuan in 2024) and far exceeds other competitors. This market position provides advantageous competitive barriers for its future development. The prospectus also disclosed that the company had a high concentration of customers during the historical period. From 2022 to the first half of 2025, the top five customers contributed revenues of 130.8 million yuan, 227.4 million yuan, 169.8 million yuan, and 171.3 million yuan respectively, accounting for 59.1%, 52.4%, 28.3%, and 41.6% of total revenue. On the one hand, the company's customer concentration decreased significantly from 59.1% in 2022 to 28.3% in 2024, showing positive progress in diversifying customers; on the other hand, this proportion rose to 41.6% in the first half of 2025, indicating that customer concentration risk still exists and has some volatility. The prospectus clearly indicates the risks brought by customer concentration: the maintenance of major customer relationships, securing new contracts, payment delays, etc., may all have a significant impact on the business. In conclusion, WeiYi Intelligent Manufacturing exhibits typical characteristics of a technology-based company: establishing technological barriers in a niche field, driving growth through high research and development investment, and reaching a profit inflection point after achieving large-scale commercialization. Its EIIR product line's contribution to total revenue increased from 15.3% in 2022 to 53.6% in the first half of 2025, becoming the absolute revenue pillar, validating its technological-commercialization capabilities. For investors, WeiYi Intelligent Manufacturing's industry-leading position and rapid growth trajectory are attractive. However, factors such as customer concentration risk and profit stability need to be fully considered in investment decisions. As the company progresses with its listing on the Hong Kong Stock Exchange and expands into overseas markets, its future development is worth continuous market attention. The important issue the company will face after listing is how to maintain its technological leadership while further optimizing its customer structure and enhancing profit quality.